Impact of Immigration Enforcement on Small Businesses
The owner of a furniture store in Englewood reported significant layoffs following an increase in immigration enforcement last summer, stating he is now working twice as hard for half the income he previously earned.
Financial Losses Due to Enforcement Actions
In a related case, a restaurant owner lost $20,000 in canceled catering contracts as the county’s cleanup efforts coincided with the summer festive season, significantly impacting revenue. Additionally, vendors at local swap meets, who previously earned up to $1,500 each weekend, now struggle to generate just $500 in sales.
Shifting Customer Demographics
One vendor, who asked to remain anonymous, indicated a dramatic decline in Latino customers, attributing this change to both deportations and voluntary departures from the country. “I only have clients who were born here,” the vendor noted, highlighting the ongoing challenges faced by local businesses.
UCLA Study on Economic Impact
These experiences are documented in a recent study by the UCLA Institute for Latino Policy and Politics, in collaboration with Inclusive Action for the City. The research investigates the long-term repercussions of immigration enforcement on small businesses and Latino entrepreneurs in Los Angeles County, particularly following the raids last June.
Quantifying the Financial Fallout
The report focuses on commercial activity near nine enforcement sites, revealing that businesses within half a mile of these locations experienced 46,000 fewer customer visits and an estimated cumulative revenue loss of $3.16 million in just two weeks post-enforcement. Projections indicate that continuous enforcement could lead to losses exceeding $114 million over a month.
Struggles to Sustain Businesses
Amada Armenta, director of LPPI and co-author of the report, emphasized the ongoing struggles for Latino businesses, which are vital to local economies for their role in employment and community capital circulation. “When police remove customers and employees, the harm is done to the health, welfare, and safety of the entire community,” she stated.
Adapting to Economic Challenges
In light of these challenges, many entrepreneurs are making difficult adjustments. A mobile food vendor consolidated three locations into one, while a salon owner merged two sites to lower expenses. One churro vendor in South Los Angeles halted operations for six weeks during heightened enforcement, suffering an estimated revenue loss of $5,000. Several business owners are contemplating relocation or even permanent closure.
Continued Financial Strain and Mental Health Issues
Latino entrepreneurs involved in focus groups reported severe impacts, including customer loss, reduced hours, canceled orders, disrupted staffing, depleting savings, and accruing debt. Nearly a year after the enforcement actions, 95% of participants are still experiencing financial stress, with over half indicating that their revenues fail to consistently cover operating costs. Another 43% reported only breaking even.
Health Implications of Economic Hardship
Additionally, 76% of entrepreneurs revealed that coercive immigration enforcement has adversely affected their health, leading to issues such as panic attacks and depression. One wellness store owner recounted a return to alcoholism after feeling powerless during the enforcement period. Another vendor, identified only as Lourdes, described draining her savings and suffering from facial paralysis due to stress stemming from prolonged periods of financial uncertainty.
